High-low method problem, The company uses the high-low method to analyze costs. a., Accounting Basics

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High-low method problem

The following cost data pertain to 19X6 operations of Heritage Products:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Shipping costs $58,200 $58,620 $60,125 $59,400

Orders shipped 120 140 175 150

The company uses the high-low method to analyze costs.

a. Determine the variable cost per order shipped.

b. Determine the fixed shipping costs per quarter.

c. If present cost behavior patterns continue, determine total shipping costs for 19X7 if activity amounts to 570 orders.

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Accounting Basics: High-low method problem

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Accounting Basics: High-low method problem

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Recent Questions Asked Accounting Basics

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Ask an Expert for Answer!!

Accounting Basics: High-low method problem

Reference No:- TGS050310

Recent Questions Asked Accounting Basics

Q : Cost of equity to discount project cash flows

Q : Break-even point in unit sales

Q : Alternative compensation packages

Q : Estimating value of common stock

Q : High-low method problem

Q : Debt to purchase new equipment for a surgical unit

Q : Payments for purchases

Q : Simple interest method at an annual rate

Q : Rate variance-efficiency variance

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